a portfolio beta is computed as which one of the following course hero

What is the beta of a a portfolio?

A portfolio has a beta of 1.26, a standard deviation of 15.9 percent, and anaverage return of 15.07 percent. The market rate is 12.7 percent and the risk-free rate is 3.6 percent. What is the Sharpe ratio? 44. The U.S. Treasury bill is yielding 3.0 percent and the market has an expected return of 10.7 percent. .027556? 45.

What is the portfolio's beta and Sharpe ratio?

A portfolio has a beta of 1.16, a standard deviation of 12.2 percent, and an expected return of 11.55 percent. The market return is 10.4 percent and the risk-free rate is 3.2 percent. What is the portfolio's Sharpe ratio? 50. Your portfolio has a beta of 1.24, a standard deviation of 14.3 percent, and percent.

What is the actual return on average for a simple a portfolio?

A portfolio has an actual return of 15.17 percent, a beta of .93, and a standard deviation of 7.2 percent. The market return is 13.4 percent and the risk-free rate is 2.8 percent.

What is the expected return on your portfolio next year?

Your portfolio is expected to lose at least 15 percent, but not more than 37 year. next year. have an overall average rate of return of 37 percent. E. There is a 37 percent chance that your portfolio will lose at least 15 percent

What is beta in portfolio?

What is Beta (β) of a portfolio?: Risk associated with investment: Investments are held in securities with many objectives in mind. From meeting the financial needs to earning the maximum returns, the objectives of the individual investors vary based on their risk appetite and various other factors. But generally, the risk that the investments in the portfolio will not yield the returns expected is very common among the investors. This risk can be classified into 2 types based on the factors that trigger the risk. They are: 1 Systematic risk 2 Unsystematic risk

How is beta computed?

It is calculated by dividing the covariance the security's/portfolio’s returns and the market's returns by the variance of the market's returns for a specified period. Market return is perceived as benchmark index return such as Nifty and Sensex.

What does it mean when a stock has a beta of 1?

It indicates that the portfolio/stock’s return is as same as the market return or almost close to it . Beta value less than 1: Beta value less than 1 indicates that the underlying portfolio is relatively less risky/less volatile than the market. Investors with low risk appetite can choose the securities with beta less than 1.

What are the two indices used for beta?

Stock market indices such as Nifty and Sensex are used as market return in computation of beta.